Legislative Health Care Workforce Commission Graduate

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Transcript Legislative Health Care Workforce Commission Graduate

Legislative Health Care Workforce Commission Graduate Medical Education

Troy Taubenheim

M e t r o M i n n e s o t a C o u n c i l o n G ra d u a t e M e d i c a l E d u c a t i o n A u g u s t 2 5 , 2 0 1 4

Overview

 GME Basics  Resident Supply and Demand  Funding Threats  Licensure Counts  Summary

GME….What is it?

The term “Graduate Medical Education” (GME) refers to the extensive training a graduate

from

medical school must complete before becoming a fully trained, independent physician eligible for Board Certification.

GME Requirements

 Newly graduated medical students must receive additional training under the supervision of a fully trained physician.

 The physician in training is referred to as a “resident” or “resident physician”.

 The principal setting for the training is in a teaching hospital.

Physician Training

Training of a physician takes anywhere from (7)* to (11)** years following the completion of a traditional four-year college degree.

Educational pathway of a fully trained cardiologist Medical Student Begins Education 4 Years Medical School 3 Years Residency Training in General Internal Medicine 3 Years Fellowship Training In Cardiovascular Disease Fully Trained Cardiologist * 4 years medical school and 3 years residency training ** 4 years medical school 7 years residency training

How Governmental Funding Works

1. Programs hire residents 2. Residents train at affiliate hospitals 5. Programs pay residents & continue services 4. Hospitals pay programs for resident stipend benefits 3. Hospitals receive governmental funding for resident time 6

Federal Programs that Pay for GME

Medicare (CMS Hospitals)

• Medicaid (Medical Assistance) • Veterans Hospitals and Health Systems • HRSA (Children’s Hospitals) • Teaching Health Centers (THCGME) • Department of Defense

GME Funding

 The Centers for Medicare and Medicaid Services (CMS) provides reimbursement to hospitals for Graduate Medical Education  CMS Reimbursement (Minnesota Averages) 

DME – Direct Medical Education (Avg. $24,000)

IME – Indirect Medical Education (Avg. $84,000)

 FTE Cap for both DME and IME 

Hospital-Specific Based on 1996 Volumes

MN Cap = 1,600 MN program totals = 2,300

 Medical Education & Research Costs (MERC)  

Minnesota Specific Legislative Funding Currently about $57 million in combined state and federal dollars

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What are DGME Payments intended to cover?

 Compensate teaching institutions for Medicare’s share of the costs directly related to educating residents:  Residents’ stipends/fringe benefits  Salaries/fringe benefits of supervising faculty  Other direct costs  Allocated overhead costs  Residents must be in approved programs  DGME payments are based on the Medicare % of patient days.

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Medicare Payments with an Education Label: IME

 Compensates teaching hospitals for higher inpatient operating costs due to:  Unmeasured patient complexity not captured by the DRG system  Other operating costs associated with being a teaching hospital (lower productivity, standby capacity, etc.)  Percentage add on-payment to basic Medicare per case (DRG) payment

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Minnesota GME Sponsors

 Mayo Clinic College of Medicine  Abbott-Northwestern Hospital/Allina Health System  Allina Health / United Family Medicine  Hennepin County Medical Center  Twin Cities Spine  HealthPartners Institute for Education and Research  Tria Orthopaedic Center  Fairview Southdale Hospital  University of Minnesota Medical School

Minnesota Teaching Hospitals

 Abbott Northwestern  Children’s Hospitals  Gillette Children’s  Hennepin County MC  Mayo-Mankato  Methodist-Park Nicollet  North Memorial  Regions Hospital  Rochester Methodist  St. Joseph’s  St. John’s  St. Mary’s Duluth  St. Mary’s Rochester  St. Cloud Hospital  St. Luke’s Duluth  UMMC-Fairview  VA Health System

MMCGME Trainees by Specialty Category

1,275 Accredited FTEs Primary Care includes: family medicine, general internal medicine, and general pediatrics Expanded Primary Care includes: general surgery, psychiatry, and obstetrics

Minnesota Physicians by Age

 Active MN licensed physicians practicing in Minnesota = 13,272  43% are age 56 or older Age Range 28-35 36-45 46-55 56-65 66-79

Grand Total

Age 56 plus Count 800 2,321 4,409 4,824 918

13,272

5,742 43%

Medical Students vs. Residency Slots

 Unless Congress lifts the 16 year cap on federal support for residency training, we will face a shortfall of physicians across dozens of specialties  Students are doing their part by applying to medical school in record numbers  Medical schools are doing their part by expanding enrollment  Now Congress needs to do its part to expand residency training to ensure that everyone who needs a doctor has access to one

Residency and the Match

2013 R ESIDENCY A PPLICATIONS

17,487 US MD

1097

2,677 US DO

658

1,487 Prev US MD

758

5,095 US Int’l

2389

7,568 Int’l

34,314 TOTAL 3967 2016 R ESIDENCY A PPLICATIONS

21,000 US MD 6,000 US DO

27,000 TOTAL

26,000 AVAILABLE ACGME SLOTS

Sources: AAMC, AACOM, NRMP

GME Funding Threats

 IOM Report July 29, 2014 (35% reduction)  Presidential budget recommended reducing IME by 10%  Impact of $9 billion over 10 years  Simpson-Bowles deficit commission proposed  Cutting IME by 60%  Limit DGME payments to 120% of the national average salary paid to residents in 2010  Impact of $60 billion over 10 years  Unreliable MERC Funding (Minnesota Specific Funding)  Cut by 50% in 2011  Restored in 2013

GME Value Beyond CMS

 Mission  Physician workforce recruitment  Future referrals (i.e. by former trainees)  Faculty non-clinical productivity  Institutional reputation  Research  Clinical revenue  Net clinical productivity  Leveraged professional fees  Clinical cost savings  Patient outcomes  Education of medical students  Faculty recruitment  Address patient quality issues

2013 MMCGME Trainee Disposition

Of graduates entering medical practice:

61% remained in MN (23% in Greater MN)

70% remained in the region

Summary

 Retirement rate exceeds current training  GME is the bottleneck for more physicians and the training is long term.

 The number of training slots funded is capped by CMS.

 Funding is less than costs and is at risk.

 Medical School graduates are increasing and resident slots is static.

 Physicians trained in MN stay in MN.

 40% of Programs are Primary Care

What Can Be Done

 Stabilize and Increase Clinical Training Opportunities  Increase State Funding through MERC  Incentivize Primary Care Residents to work in Primary Care  Engage other Stakeholders  Non-Teaching Hospitals  Practice Plans  Business and Industry  Health Plans

Questions?